Strategies for successful and sustainable marketing of Medicinal Aromatic Plants (MPAs).

 

 Medicinal Aromatic Plants supply chain 

Different MAP species have varying requirements for their cultivation, resource management in the wild, harvesting, processing and importantly marketing. The generic activities common to most MAP supply chains are highlighted, while the people and organizations who may commonly be involved in MAP supply chains are highlighted.

In local MAP enterprises where the market channel is short, the same people (small-scale farmers, collectors) often harvest, process, and sell the product to the final consumer (see Figure 8). In longer chains it is more common for different activities to be carried out by different individuals, groups or organizations. For trade to be equitable, individuals or groups should be reasonably compensated for their contributions (labour, technical expertise, marketing skills, etc.), and level of risk taken.

The variation in MAPs, from raw fruits and food to aroma chemicals and phyto-pharmaceuticals, is reflected in a wide range of different types of markets, from bulk to niche, informal and seasonal, to formal and regulated. Most plants are traded regionally and in small quantities, in rural, peri-urban and urban settings. For example, it is estimated that informal trade in MAPs in southern Africa is dominated by 500 000 traditional healers that dispense crude remedies and herbal medicines from more than 1 000 plant species, to between 50 and 100 million consumers. As such, for small-scale farmers and/or collectors to move from subsistence to trade, or small informal traders to move into more regulated small-scale businesses, various barriers to entry into trade are often encountered, for example access to seedling for planting, to the resource in the wild and market information. And, as activities become more specialized further along the supply chain, there are greater opportunities for single traders or small groups of traders to exert their market power and establish mechanisms to prevent others entering the business. In addition, export-oriented marketing is particularly demanding, requiring detailed information about specific markets, product specifications and standards. A key challenge for people involved in MAP activities is to identify these barriers and, where possible and legal, identify ways to remove them. Supply chain analysis can improve understanding of how trade networks operate, who the main actors and organizations are and what their specific activities are, the different routes for trading the MAP (which exist and could potentially be developed), and the skills, capacity and experience available for successfully engaging in trade (FAO Diversification booklet No.12 Non-farm income from non-woodforest products). 

In local, medicinal markets, consumers mostly require fresh (with the exception of bark), undamaged and effective medicines. As most consumers are from low income brackets, the demand for value added products may be limited, and in southern Africa in particular, it is likely that the demand for crude traditional medicines will increase given the HIV/AIDS pandemic that is giving greater use for traditional medicines as an alternative to expensive and often unavailable Western drugs.

Successful marketing strategies 

Managing cultivation and the natural asset base

 The majority of MAPs exhibit different natural abundance and reproductive rates. Domestication, cultivation and resource management in the wild techniques need to be mastered by small-scale farmers and/or collectors. These improve quality and yield. Indeed, given the demand for a continuous and uniform supply of MAPs and the accelerating depletion of forest resources, increasing the number of MAPs species in cultivation is an important strategy for meeting a growing demand. Compared to the quantity of wild harvested MAPs, few species are currently cultivated, and one explanation for this may be that cultivated plants are sometimes perceived by consumers as being of inferior quality compared to slower growing wild specimens which can have higher rates of active ingredients. This is a challenge and requires support from both public and private institutions to change such perceptions. This can be carried out by informational and promotional campaigns in local communities to change consumers’ perceptions on cultivated MAPs. Domestication of a previously wild collected species requires both substantial investment of capital, know-how and also several years of investigations. 

Resource management plans.

For harvesting of wild MAP resources to be sustainable, market demand must be balanced with the availability of the species in the wild, and its recovery rates after harvesting. Where commercial harvesting is proposed or already taking place, a species management plan is needed in order to accurately assess impact and establish sustainable harvesting rates. To effectively undertake many of the components of a harvesting management plan will require technical extension support. The most useful and practical guide available for the preparation of a management plan, detailing how to measure plant populations, distribution, harvesting yields, etc., written specifically for supporting communities to sustainably utilise non-timber forest product species, is found in Peters’ Ecological Primer (1996).

Harvesting Techniques 

The quality of MAPs and the sustainability of extraction are closely linked to how plants are harvested. Many MAPs can be harvested without harming or killing the individual tree or plant, but it largely depends on what parts are harvested as to the potential impact on the individual plant. For example, harvesting an entire individual plant to extract medicinal properties can have a detrimental impact upon a species. Likewise, bark is frequently collected for medicinal property extraction, and intense and frequent harvesting often results in ring barking of trees, which can subsequently die. Furthermore, the time of harvesting, and other processing aspects such as the rate and temperature of drying, and storage conditions can influence the quantity and quality of yield. The season, time of the day harvested and technique adopted all vary depending on whether mature or tender parts are harvested, and some medicinal herbs are collected only at night. Roots are often harvested by digging 15 to 20 cm away from the plant and by levering the root. Exudates, such as resin, are tapped into small containers and transferred to plastic containers, or recycled tin cans. In many cases, the harvested products need to be field-dried for short periods to remove excess moisture, whereas more perishable products such as flowers may need to be processed or transported without delay.

- Processing and packaging -

 Processing MAPs to add value, stabilise properties for a longer shelflife, and improve hygiene, occurs at different scales using a range of technology and equipment, from basic to very specialist. Production facilities may range from simple units which extract incense of essential oils, to highly sophisticated factories producing perfumes and medicinal preparations. Processing for local use may simply involve preparation methods such as hot and cold water extraction, expressing the juice after crushing the plant, powdering dried plant material using water, oil or honey to transform a dried powder into pastes (see Figure 10), or even fermenting the plant matter, using a source of sugar (FAO Diversification booklet on No. 21 Traditional fermented foods and beverages for improved livelihoods). As such, preparing doses from extracts can be a suitable activity for a small-scale enterprise, thereby helping meet the healthcare demands of local populations. As medicinal compounds often naturally occur in small quantities in a plant, processing can require large volumes of raw material, and therefore scaling up or expanding an activity can have natural resource and infrastructural implications. 

Drying 

Drying is the most commonly important processing technique for MAPs, since many more specialized processing technologies require dried MAP material. Options include shade, oven or freeze drying. Shadedrying is the lowest cost option: plant material should be chopped into small pieces and placed onto permeable material that allows air flow from all directions, and dried away from air pollution and dust. Oven drying is faster and more effective than shade-drying and as such involves less risk of fungal contamination and “aflatoxin” infection (toxic compounds produced by certain moulds). However large drying ovens are an expensive investment for a smallscale producer/processor. Freeze drying is the most expensive and comprehensive drying technology, reducing plant material to very low moisture contents, and providing stable material with limited risk of infection and concentrated medicinal properties, for long periods of time.

Traditional knowledge and processing 

In the informal markets of southern Africa, for example, MAPs are mostly sold in raw unprocessed forms, or in a basic processed form (chopped, ground, or boiled extracts). Collectors often sell plants to traditional healers who have the knowledge to undertake the necessary steps to prepare medicines suitable for administering. Packaging is usually simple, using locally available and free products such as newspaper wrappings, plastic packets, and recycled glass bottles. Commercial pharmaceutical operations, by contrast, produce medicines under strict regulations concerning processing and packaging. Traditional knowledge is closely tied to processing as healers can both identify plants with medicinalproperties, and understand what mixtures and doses of plants can beused to treat particular ailments. Often specific mixtures are the speciality of individual healers. The traditional manner of application of a MAP should inform the type of processed product to be manufactured from it, for example Bulbine (iBhucu) leaves are traditionally administered topically to treat skin complaints, making a cream from them, and have never been taken orally. Processing can be adjusted in many cases to suit different consumer groups, and it can be advantageous to process a range of types of the same product, such as the echinacea herb used as an immune booster which is available as a tea, tincture, capsule, pills, and specifically dosed syrups for children. 

- Safety -

Based on the long history of MAP usage, users of traditional medicines accept that they are safe for human consumption. However, the absence of regulation of the MAP trade in aspects such as collection, processing and storage provides no such guarantee, and environmental pollution, mis-identification and adulteration can provide further grounds for concern. As such, in the absence of regulatory controls, the safety and quality of MAPs can vary considerably. 

- Storage -

The shelf-life may vary for different MAPs, and different MAPs should be stored separately. Recommended storage areas should be well ventilated and designed to prevent contamination by insects, rodents, etc., and good attention should be paid to the cleanliness and good maintenance of such areas. Humid shady conditions are required for roots and tubers for evaporative cooling, and sawdust and straw can be used for fruits and other more perishable products to avoid skin damage. Spreading over ventilated trays can be a useful way to store dried MAPs. Storing plants, extracts, tinctures and other preparations may require controlled temperature and humidity conditions or protection from light. 

- Packaging-  

Packaging to avoid damage during transport is different from packaging to produce a final product, grade it, or improve its presentation and shelf-appearance. An overview of processing technologies was presented in Box 12. Some products are sensitive to compression or impact damage and bruising, and others to contamination, and as such require individual wrapping with appropriate mediums, such as straw, bubble paper, corrugating medium, wooden or plastic trays. 

- Organization -

 Good organization can increase resiliency to external shocks, and access to new markets, and is about making the most of social assets and personal skills for successful marketing. This can have a positive impact on: • Improving product quality and making supply consistent, and being able to diversify through different processing methods; • Overcoming large distances to the point of sale and achieving more cost-effective means of transport and marketing; • Being able to access and acting upon market information and in doing so increase the ability to negotiate with other ‘actors’ in the supply chain; • Promoting the product to potential traditional healers, consumers, pharmaceuticals, etc. • Improving levels of transparency between collectors, processors and traders to avoid the concentration of market power in a few hands. The ability of a group of people or a community to organize itself to have a positive and sustained impact is influenced by a number of factors including social cohesion, the existence of other forms of organizations, and the presence of charismatic individuals able to motivate people to action. There is a tendency, when MAPs are collected from private land, for the organization to take the form of a cooperative, and where the resource is collectively-owned, to lead to the development of communal organizations. 

Sources of external support can be helpful in establishing and strengthening community organization.

-  Marketing and market information - 

Successful marketing can result in improved income, status, and confidence for those involved in MAP activities, and some general approaches include: • Awareness of market demand by talking to different traders and healers about volume and price, what consumers are purchasing, etc.; • Exploring different marketing options depending on resource access and transport infrastructure, selling unprocessed or processed, directly or indirectly to customers, traders, traditional healers, regional wholesalers, etc.; • Adding value where possible, and prolonging shelf-life of the more perishable medicinal products through grading or processing into simple products, including dried leaves, oil extracts, etc; • Good organization to collaborate with other collectors, processors, traders, etc., and pooling stocks to attract traders who prefer to buy bulk quantities; • Sharing knowledge and experiences with other collectors or traders and, where necessary, the cost of seeking external advice; • Where possible, share resources with other collectors, processors or traders, and re-use and recycle equipment, to reduce capital investment; • Gain familiarity of existing markets and trading routes, to help identify new types of products, or niches for existing products, which could be filled. Successful marketing strategies are all subject to local and transport differences, and consumer preferences. They may differ for MAPs which are traded fresh, or processed, or in bulk or as high value low volume products. Establishing a good relationship with traditional healers and other buyers comes from delivering reliable qualities and quantities of MAPs, and it can be advisable to start modestly, securing a small network of buyers to whom a reliable supply can be delivered. 

- Niche marketing -

 In recent years green consumerism, coupled with a concern for environmental conservation and a preference for organic products, has provided a new impetus for MAPs. However, green marketing is a competitive and heavily regulated industry, and requires both specialist knowledge and considerable financial investment to become certified. Requirements for any credible certification, with which a price premium can be placed on the marketed product, include meeting sustainable management criteria. Aspects of this are inaccessible, both financially and technically to small-scale producer communities or organizations, and would require external support to undertake. Niche marketing is therefore relatively inaccessible to small-scale producers, unless they are able to bulk up the supply of their product through some type of formal organization, directly to a wholesaler who will pay them a premium for their product. In most cases it is almost certain that producers would require both investment and external expertise in order to achieve recognized certification, including Fair Trade status, guaranteeing them access to a premium paying niche market.

- Accessing market information -

 Market information is varied but generally related to quantity, quality and price characteristics of particular products in different markets, and is essential to enter new markets and hold onto existing ones. Good organization can help develop social assets and contacts with a variety of traders and healers, and help access more market opportunities. Market information is only part of the picture, and those involved in MAP trade also need to have the capacity to be able to act upon it. Market information and contacts can be less crucial when marketing a product with high demand, or marketing very locally. It does however often become more important for trade when investments are made in processing and grading to sell different products at different prices. Medicinal plant collectors can be vulnerable to market concentration in the hands of only one or a few traders, traditional healers, or organizations, because of often low formal education levels, and remoteness from information sources. Community organizations and other forms of external support can enable collectors to negotiate improved working relationships with existing traders, or even seek new opportunities. 

- Education, business skills and a willingness to take risks -

 Level of education can be an important factor in determining people’s capacity to engage in income generating activities. At collector level it appears the informal education and learning on the job may be more important in ensuring a household’s success, but for trading beyond a local level, basic bookkeeping and numeracy skills are often required. Personal characteristics, such as self-confidence, a willingness and ability to experiment, innovate, and take risks, and in particular, attention to detail, are all often as equally useful qualities to have for MAP collectors and traders. Furthermore, culture and tradition and a community’s indigenous knowledge can be very important in determining success, both in terms of MAP resource management, and the customary procedures for working with, and supplying, traditional healers. Diversification options to reduce vulnerability Diversified MAP activities, through access to a range of products available for collection or trade is generally associated with reducing vulnerability and risk and enhancing sustainability. Alternatively, processing the same product can provide a range of goods to cater for different consumer preferences, and in turn diversifies the market. Other ways to diversify small-scale enterprises can include incorporating useful by-products, perhaps from processing raw material, into other activities. An example might be to use branches of suitable species, once the leaves containing medicinal properties have been extracted, in agricultural mulches.